Senate Draft Bill Signals Potential ICO Revival for Crypto Startups

The Senate Banking Committee has unveiled a preliminary draft of crypto market structure legislation, mirroring aspects of the House's recently passed CLARITY Act. This legislative push aims to create regulatory clarity for digital assets by amending outdated securities laws and shifting oversight from the SEC to the more crypto-friendly CFTC.

Most notably, the bill could reopen legal pathways for initial coin offerings (ICOs), potentially reigniting a fundraising mechanism that fueled the last bull market. The Senate's version focuses on securities regulation, with a companion bill addressing commodities expected from the Agriculture Committee in coming months.

Market participants view this bipartisan movement as a potential watershed moment for crypto startups seeking compliant capital formation. The proposed framework suggests a more nuanced approach to token classification, potentially reducing regulatory friction that has stifled innovation since the 2017-2018 ICO boom.